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  • Why the world economy needs America to avoid the fiscal cliff

    From guardian.co.uk

    Read Full Story at guardian.co.uk

    Just as during the Cuban Missile crisis of 50 years ago, the world is watching anxiously as the politicians in Washington try to prevent the US economy from plunging off the fiscal cliff. The stakes could never be as high as they were when Khrushchev and Kennedy were on the hot line in October 1962, but there would be serious consequences were the talks between President Obama and John Boehner, the leader of the Republicans in the House of Representatives to end in failure. George Osborne is just one of the finance ministers keen to see the impasse ended. The latest news from the UK economy was ... (full story)

    • feelmypecs
      feelmypecs's Avatar

      58 posts
    • Trading aside, id like to see US go over the cliff. If corrective measures cant be taken softly, they have to be taken harshly. Putting off these corrections only further warps the economy, and makes things eventually worse.

    • frx_trader

      929 posts
    • This cliff, what is it? I don't need opinions, just tell what kind of creature it is. I just know it has tax increases and budget cuts. Is it true?

    • GoodsWoods

      5 posts
    • Google answers questions better than FF.

    • Guest

      IP XXX.XXX.51.170
    • trading friends, I do not know what is this fiscal cliff. maybe the same as when lehmann brothers went down 2008, as I remember as a rookie trader. from then on going short became instinctinctive, resulting in my biggest win ever when the dubai debt crisis hit the fan. that was very early morning for me, I hit everything short with impunity, dow, crude oil, euro. I honestly do not think that much changed since that day except that politicians and central bankers became more powerful, to the extent where is difficult to go short any more. main thing is not to get psyched out by the big guys. the big guys will fall again. for interest my win/loss record during last 3 months: 10-0; 0-5 (including a bad loss), whereopen I droppped a weight division or two, i.e. droppped my exposure, running in to year end at 10-1 (win record). year ending about square. trading is not for everyone, trade safe and trade brave. gold is my witness.

    • SedonaPipper

      355 posts
    • The World is anxious because we might have a nuclear war? Naw the premise is not valid
      so the rest of the article is pure propaganda or better known as fear mongering. The fiscal cliff is a change in policy - higher taxes and lower spending. Hmmm sounds like what the political parties want except there is no one to blame. What are the positive aspects of the fiscal cliff? I don't read anyone talking about them - wonder why? As I understand it - taxes on everyone will go up - fair. Defense spending will go down - Positive - Government spending on entitlement will be cut - Positive - What am I missing?

    • jaygee

      1,999 posts
    • Massive layoffs will happen almost immediately. Companies have already planned for them and are ready to take immediate action. Defense and other department contracts will be rescinded. A lot of the dod cuts will be foreign so if you know anyone that makes a living off of the military, they will probably be effected.

      The Department of Defense employs 3.2 million people – 718,000 of them civilians – and is the largest employer in both the United States and the world.

      Taxes will go up for everyone across the board so everyone will have less to spend everywhere. stores, construction, etc. The economy will, almost overnight, contract and growth will end. The fragile recovery will be over even though we are starting to see signs of it picking up.

      If you think any of this isn't going to happen, you are kidding yourself. There are some things that companies and government departments can do to slow the effects but they are real and WILL have a very large impact.

      More importantly for us, the dollar should surge large and anything that trades against it should rescind accordingly. The only exception may be the yen

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